XRP Fear Peaks As Analyst Sees Bottom Forming

A cryptocurrency analyst is suggesting XRP may be nearing a market bottom, pointing to rising fear levels, heavy realized losses, and growing on-chain activity as potential signals that selling pressure could be peaking.

Analyst Points To Capitulation Signals

In a market breakdown shared on YouTube on February 23, prominent crypto commentator Zach Rector argued that XRP may be approaching a turning point after an extended period of volatility.

He pointed to large realized loss spikes, a metric often associated with capitulation phases where investors sell at a loss during extreme fear.

As he explained, pointing to a mix of sentiment and on-chain data:

“I do not think that the absolute low is in yet, but the bottom signals are starting to show themselves.”

Historically, such events have sometimes coincided with late-stage bear market conditions. When weaker holders exit positions en masse, selling pressure can fade, allowing prices to stabilize or rebound if demand returns. 

Rector framed the current environment as one where fear-driven selling appears elevated, observing that:

“If many weak hands have already sold, there may be fewer sellers left to push prices lower.”

He emphasized that this does not guarantee a bottom has formed, but suggested the market may be entering a late-cycle correction phase rather than an early-stage downturn.

On-Chain Activity Adds Context

The analysis also highlighted rising activity on the XRP Ledger. Daily transactions have reportedly climbed sharply in recent weeks, suggesting continued network usage even as price action remains weak. Rector noted that:

“Daily successful transactions have jumped about 40%, approaching 2.5 million per day, pointing to rising real network usage, even as XRP remains below key moving averages.”

He added that some of the activity may stem from ecosystem developments, including non-fungible tokens (NFTs), automated market maker (AMM) usage, and broader experimentation around decentralized finance (DeFi) functionality, but that increased utility remains a constructive signal.

Increased network engagement during price weakness can sometimes complicate bearish narratives, as usage and sentiment diverge.

Still, the relationship between on-chain metrics and price direction remains inconsistent across cycles, making it difficult to draw firm conclusions from activity alone.

Bottom Calls Remain Speculative

Despite the optimistic framing, the analyst acknowledged uncertainty around timing. Market bottoms are notoriously difficult to identify in real time, and capitulation signals can persist longer than expected before a trend reversal occurs. As Rector stressed:

“Historically, large spikes in realized losses often show up near market bottoms. This is because extreme fear tends to peak before price does.”

Crypto markets have also shown sensitivity to broader macro catalysts, including geopolitical tensions, monetary policy shifts, and regulatory developments. Those external factors can override technical or sentiment-based signals.

At the moment, XRP is changing hands at $1.38, down 1.8% in the last 24 hours, 8.2% across the past seven days, and 28.1% over the last month, according to the most recent chart information.

For now, the takeaway is less about a confirmed reversal and more about positioning in the cycle. Though some analysts see signs of exhaustion among sellers, the question of XRP being truly near a bottom remains open, and the answer will likely depend on broader market conditions.

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